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2022 (4) TMI 666 - AT - Income TaxPenalty u/s 271(1)(C) - Unexplained Expenditure on Stamp Duty and Registration Charges made out of Undisclosed Income - HELD THAT:- The word “conceal” refers to the deliberate act on the part of the assessee. In the light of the above discussion and on analyzing the present facts of the case we note that undeniably the impugned cost was incurred towards the purchase of the land which were duly disclosed in the income tax return. Likewise, all the relevant property papers were duly filed by the assessee during the assessment proceedings which contains the details of the registration and stamp duty charges. The expenses which are in dispute for the imposition of the penalty have direct nexus with the cost of the properties purchased by the assessee which were duly disclosed. Thus it is transpired that there was no malafide intent on the part of the assessee to conceal the particulars of stamp duty and registration charges as the information for the same was available in the public domain which is directly connected with the purchase of disclosed properties. Since the purchases of properties have been disclosed in the income tax return, it cannot be inferred that the assessee had no mala-fide intent in not disclosing the connected expenses being stamp duty and registration charges. There was no dishonest intent of the assessee particularly in the given facts and circumstances where the assessee had sufficient income i.e. exceeding the amount invested in purchases of properties. Accordingly, we are of the view that the assessee inadvertently omitted to disclose the impugned cost in the income tax return without having any dishonest intent. Thus in such facts and circumstances, we hold that the penalty u/s 271(1)(c) of the Act, is not sustainable. - Decided in favour of assessee.
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